CITIC Group plans to privatize its Hong Kong-listed subsidiary, CITIC International Financial Holdings, in a US$1.57 billion deal, Bloomberg reported. Shareholders in CITIC International will each receive one new share in China CITIC Bank, plus HK$1.46 (US$0.19) for every share they own. This values the stock at HK$6.90 (US$0.88), a 21% premium over its last trading price. CITIC Group currently has a 55% holding in CITIC International, while Spanish lender Banco Bilbao Vizcava Argentina (BBVA) has 14.51%. To complete the privatization, the two companies need to buy the 30% of CITIC International that is publicly traded. BBVA has said it will spend US$1.24 billion to double its stakes in CITIC International and CITIC Bank. After the deal, the Spanish bank will own 10% of CITIC Bank. CITIC International owns a bank and two asset management firms in Hong Kong.